What financial obligations must a Cordova franchisee satisfy to avoid default?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee fails, refuses, and/or is unable to timely pay and/or satisfy the Royalty Fee, Advertising Contribution, and/or any other payment, fee, financial obligation, charge, and/or monetary obligation payable and/or due to Franchisor pursuant to the terms of this Agreement, under this Agreement, and/or any other agreement between Franchisor and Franchisee;
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, a franchisee must satisfy certain financial obligations to avoid defaulting on their franchise agreement. Specifically, the franchisee must timely pay the Royalty Fee, Advertising Contribution, and any other payment, fee, financial obligation, charge, or monetary obligation that is due to Cordova.
Failure to meet these payment obligations can lead to default, which could ultimately result in the termination of the franchise agreement. Cordova will provide written notice of the default, and the franchisee has a 10-day period to cure the default to Cordova's satisfaction.
This requirement is standard in franchising, as the franchisor relies on these payments for ongoing support, brand development, and overall system maintenance. Prospective Cordova franchisees should carefully review the franchise agreement to fully understand all financial obligations and ensure they have sufficient capital to meet these requirements on time.